Washington, DC: The imposition of conventional tax rates on the commercial production and retail sale of cannabis nationwide would yield an estimated $28 billion in federal, state, and local tax revenue, according to an analysis provided by The Tax Foundation – an independent think-tank based in Washington, DC.
The bulk of the new revenue, $20.5 billion, would be directed toward the states through the collection of excise taxes, sales taxes, and income taxes. The balance of revenue would be collected in federal excise and income taxes.
Authors acknowledge that tax revenue collection in legal marijuana states, such as Colorado and Washington, has exceeded initial expectations. They estimate the size of the current marijuana market in the United States to be $45 billion per year.
For more information, please contact Allen St. Pierre, NORML Executive Director, at (202) 483-5500. Full text of the study, “Marijuana Legalization and Taxes: Federal Revenue Impact,” is online at:http://taxfoundation.org/article/marijuana-legalization-and-taxes-federal-revenue-impact.